- Selecting a product to trade on the market depending on demand
- Choosing a product to trade on the market depending on the location of the outlet
- Selecting a product to trade on the market depending on the size of the outlet
- Selecting a product to trade on the market depending on the size of the starting capital
- Choosing a product to trade on the market depending on seasonal factors
- Selecting a product to trade on the market based on existing suppliers
The task of a novice entrepreneur who does not yet know what to trade on the market is to conduct research, study supply and demand and make a choice.
The state helps the unemployed who are registered at the labor exchange and provides them with free funds for business development. In addition, now it is not a problem to go to the bank and get money there.
After the future entrepreneur has decided on the sources of funds, it is necessary to agree on renting a place on the market and choose a suitable product for himself.
Not everyone makes the right choice; out of 10 beginners, only 1-2 trade successfully.
The choice is actually very large, but often we see the same thing in the shopping malls. Most often, new entrepreneurs, having noticed what sellers who have been working for many years are selling, want to emulate them and copy the range of products they sell. This is a big mistake.
The fact is that if, for example, the number of meat traders increases, the number of buyers of this product will not change. Before your appearance on the market, there was a certain balance between the number of retail outlets selling a certain product and the number of buyers of this product.
you will only join the existing stream and, without having regular customers, you will receive only a small share of the revenue. The income may be so small that there is not even enough money to pay rent for the premises.
In addition, most likely, sellers of this product will treat you unkindly.
Three reasons why buyers go to the retail market:
- You can find any product here.
- Here you can bargain (ask for a discount).
- There is a trusted seller for every product here.
Selecting a product to trade on the market depending on demand
It is necessary to cling to the first point and understand what product is missing on the market.
Look around, pay attention to which places a large number of people gather and why, see how many points with similar products there are.
Determine what is the reason for the great interest: the uniqueness of the product, its quality or the professionalism of the sales consultant?
Each person has his own unique taste, but to become a successful trader and make a large number of sales, you need to focus on what will appeal to the majority of market visitors.
You may not generally like the desires and preferences of buyers, and here you should make a choice, what do you want more: satisfaction of personal opinion or a good income?
When choosing a product, you need to take into account the location of your retail location and adequately assess its features. There is a group of goods in the market that are not assigned to a specific place (for example, home-cooked meals that are distributed to market traders).
Usually the entire territory of the trading area is divided into sectors: in one sector they sell shoes, in another - fish, in the third - office supplies, etc.
Coming to the market, for example, to buy shoes, the buyer purposefully goes to a certain sector, where the entire assortment is presented in front of him, and makes a choice. Therefore, it is not economically feasible to sell slippers in the outerwear sector, and vice versa.
But there may still be exceptions. For example, in the aisles with children's clothing and shoes, you can open a point selling fresh pancakes or muffins, which children love so much.
The market is also divided into places that are considered passable and non-passable (located at the end of the trading rows, along the periphery of the market, in side and dead-end passages). Good traffic places are always occupied, so those starting their business in the market will most likely have to deal with places with not very high traffic.
You should know that everyday goods (for example, cigarettes, bread, etc.) cannot be sold in impassable areas. Special purpose and narrow range products are more successfully promoted here (for example, hunting knives, cages for pets, etc.).
The area of the retail outlet is also taken into account here; on three square meters it is simply impractical to sell fur coats or spare parts for cars: you will not be able to provide the buyer with the necessary assortment, and not everyone likes to choose from a catalog. Most people prefer to touch and hold the product in their hand before purchasing. But in such an area you can provide a good selection of tea, cigarettes or other small goods.
It is, of course, up to you to decide whether to sell imported tights or Italian shoes, but whatever you choose, you should have a good assortment in this category.
It should be borne in mind that you cannot invest all your funds on the purchase of goods.
You may receive an order for something else that is currently out of stock, and you must have the money to purchase it.
Trade, for example, in fast food, involves, in addition to the purchase of basic products, the purchase of special equipment and inventory. At the same time, the cost of purchasing equipment is much higher than other costs.
From this we can conclude that you need to choose a product that you can present in the maximum range. A buyer who visits your retail location should not have the desire to look for something somewhere else.
When selling, for example, winter fur clothing, you must understand that in the warm season the demand for this product will decrease significantly and you may even suffer losses.
Therefore, it is necessary to provide for this and change the assortment depending on the time of year. It will be best if you do not radically change the product according to its intended purpose.
If, for example, during the cold season you sell winter hats at your outlet, then in the summer you can sell hats, caps, etc.
Having decided on the category, you need to study the offers of wholesale suppliers. It should be borne in mind that there are currently a lot of resellers, so it is most profitable to establish direct contacts with manufacturers.
For example, when choosing suppliers of sausages and sausages for hot dogs, you need to review all possible suppliers.
In addition, many of them are ready to make significant discounts for certain purchases and provide refrigeration equipment for rent for a small nominal price.
When negotiating the terms of wholesale purchases, it is necessary to foresee in advance the issues of expected returns, exchanges, and quality guarantees.
This is especially important when trading power tools (they are finally checked only after some time of operation), as well as goods that cannot be immediately checked for quality.
You should avoid large wholesale purchases in spontaneous markets in which you are poorly oriented.
Avoid goods that do not have the necessary quality certificates - their sale can result in large losses in the form of fines, including termination of business activity and confiscation.
Do not choose a product based on the advice and general ideas of your neighbors in the shopping aisle. By thinking outside the box, you can purchase exactly the product that will be in greatest demand.
By choosing what to trade on the market, you define your business. Therefore, think in advance about how you can develop and improve it (opening new points, expanding the range, related trade through online stores, etc.).
Below is a partial list of goods and services that you can trade on the market.
Main directions in the market:
- Business selling women's clothing and footwear.
- Business selling men's clothing and footwear.
- Business selling children's goods: clothes, shoes, toys.
- Business selling home and interior goods.
- Business providing sports goods.
- Business selling perfumes and cosmetics.
- Business selling watches and accessories.
- Workwear trade business.
- Business selling goods for cars.
- Business selling gardening and vegetable products.
- Business selling pets and products for them.
- Business providing repair services (repair of clothes, shoes, watches, mobile phones, etc.).
- Business selling repair products.
- Business selling plants.
- Business selling office supplies.
- Business selling books, atlases, maps and other printed materials.
- Food trading business.
- Business selling telephones and other electrical goods.
- Fast food service business.
- Business selling paintings.
- Business selling wallets and bags.
- Business for installing satellite dishes, doors and plastic windows.
- Business selling antiques.
- Business selling outdoor products.
- CD sales business.
- Business selling wigs, hairpieces and hairpins.
Study it carefully, think about what is missing in your future place of work.
It will be very good if you visit the central markets of big cities and see how the range of goods differs.
Follow fashion; often in six months you can determine the demand for a particular product. Preferences are often shaped by the media.
Source: http://gejzer.ru/statii/chem-torgovat-na-rynke.html
What is profitable to trade during the 2018 crisis: What to sell?
During a crisis, many trading enterprises suffer serious financial losses, as the purchasing power of the population decreases sharply, and many goods remain unclaimed.
But despite this, experts believe that economic instability is the best time to open your own profitable business. To get a good income, you need to know what to trade during the 2018 crisis.
This will be discussed in this publication.
Anti-stress products
When thinking about what is best to trade during a crisis, many entrepreneurs for some reason forget about goods that help relieve stress.
In order not to fall into depression due to financial problems, people use different methods that allow them to relax and forget about all the troubles for a while.
Some citizens prefer to relieve stress with alcohol, while others buy sweets to cheer up.
There are also people who buy various sedatives in pharmacies.
If you cannot decide which product to trade during a crisis, try to focus on such products.
Funeral paraphernalia
This sounds sad, but funeral services in our country are in demand in any economic conditions.
People see off their loved ones on their last journey, regardless of their financial situation, so the trade in funeral accessories does not freeze even in times of crisis.
When choosing an assortment of what to sell during a crisis, give preference to goods from the economy segment.
Fancy funeral supplies are too expensive, making them too costly for beginners. At the stage of business formation, they can be completely excluded from the range.
Eco-friendly products
Recently, many people have been trying to buy only natural, environmentally friendly products. Based on this passion, rural residents can build a profitable and quite promising business. So, what to trade during a market crisis?
Experts have compiled a list of the most popular home-made products:
- Meat;
- Dairy products;
- Vegetables and fruits;
- Smoked meats;
- Pickles and preserves.
This is the best-selling product during a crisis in any region of our country.
If you are looking for sources of additional income, choose any products from this list and feel free to enter the market with them.
Real estate
Many citizens who have additional living space are wondering whether it is worth selling an apartment in 2018? Experts believe that a crisis is not the best time to sell real estate, but if you see no other way out, you can try to make money from it.
Let's talk in more detail about how to sell real estate during a crisis and get a decent income from it? First of all, try to sell your apartment as profitably as possible. Invest the proceeds in the purchase of housing in new buildings during the construction phase. When the house is put into operation, the cost of square meters will rise by 20–30%, accordingly, selling the apartment will bring you a good profit. You can also buy housing in disrepair, make major repairs to it and sell it for a much higher price.
Online trading
Recently, online trading has become very popular. Beginners often wonder what is profitable to sell online during a crisis?
You can trade any product online:
- Food;
- Household appliances;
- Shoes and clothing;
- Children's products;
- Flowers;
- Auto parts and more.
At first, select 2-3 product categories and gradually expand the range. For example, you can add watches or jewelry to an online store of shoes and clothing.
This will allow you to increase the profitability of your business.
Children's products
Parents try to give their children the best. They make every effort to provide their child with a comfortable life. Therefore, children's toys and clothing are goods for which demand never falls.
If you are attracted to this market segment, before opening a store, you need to decide what is profitable to sell during a crisis.
Experienced businessmen do not advise focusing on children's clothing, since in difficult economic conditions people try to save money, so they often buy second-hand items.
In addition, babies wear clothes after their older sisters or brothers. Therefore, in the assortment of a children's goods store, clothing should not occupy more than 10% of the total volume of products.
Hot baked goods
Can't decide what to sell during a crisis in a small town? Everything ingenious is simple. The easiest way to make money in 2018 is street selling hot baked goods. Such a business does not require large financial investments and is highly profitable.
In order to open one stationary retail outlet, you will need 1–2 thousand dollars. The main cost is the purchase of equipment. From one point per month you can get 300–500 dollars of net profit.
If you start trading on holidays in places of mass public celebrations, you can get a month’s profit in one day.
This is a great business idea without investment for Crimea, which can be implemented during the summer holiday season.
Second hand
Cheap used clothing is the best option for people who can't decide what to sell during a crisis. Such a business is characterized by high profitability and quick payback.
In order to open a second-hand store, you do not need large financial investments. Rent a small space, purchase a small batch of goods and get to work.
To understand what is profitable to sell in a small town, at first buy a cheap product and sell it by weight. Over time, you can add several expensive items and open up stock.
A competent pricing policy is a guarantee of the success of your enterprise.
Coffee machines
During a crisis, many people save money, so they try not to visit cafes and other catering establishments.
They prefer to drink a cup of coffee from a coffee machine located near their place of work or school.
Coffee machines are the simplest and most profitable option for trading during a crisis.
To open such a business, you need to purchase vending machines. If your financial capabilities do not allow you to make such a purchase, at first you can rent equipment.
In addition to the coffee machine, you will also need assorted coffee, sugar, dry cream and disposable tableware. The next important step is choosing a location.
The coffee machine can be installed in a shopping center, any educational institution, clinic, hospital, etc.
Pasta
Since our country’s economy has recently focused on import substitution, before deciding what to trade during the crisis, pay attention to domestically produced products, in particular pasta.
These are inexpensive and tasty food products that are bought by almost all citizens of our country. The greatest demand is for products in the mid-price segment. Typically, buyers are not attached to any particular brand.
For them, quality and affordable price are much more important. Buy pasta from the manufacturer and sell it in bulk at your own markup to supermarkets, canteens, cafes and companies that prepare and deliver hot meals.
According to experts, reselling goods as a business can bring decent profits, especially when it comes to inexpensive food products.
Educational courses
During a crisis, many people lose their jobs, so they are forced to look for other sources of income. To do this, they have to learn new professions that are in demand during periods of economic instability.
In this regard, the demand for various educational courses begins to grow. If you are wondering what is profitable to sell during a crisis, try offering your knowledge to consumers.
Courses in a foreign language, playing the guitar or cutting and sewing are always in great demand, so you won’t be left without income.
In addition, you can offer your services to acquaintances and friends who may become your first students.
Educational courses are one of the most promising areas of small business in 2018, which opens up great opportunities for beginners.
Products from China
Previously, many people believed that any Chinese product was consumer goods that was not of high quality. But the situation has changed and now you can build a profitable business on goods from China. As you know, in the Middle Kingdom you can buy products 50% cheaper than in our country.
Everything is produced here, from clothing and children's toys to high-tech medical equipment. Before you start doing business with China, you need to decide what to trade in a crisis.
Experienced entrepreneurs advise paying attention to the following product groups:
- Shoes and clothing;
- Electronics;
- Accessories;
- Textile;
- Children's toys;
- Mobile phones.
The easiest way to make money by reselling goods from China is dropshipping. This is a great option for those who are looking for something to do at home when they are bored and make money from it.
Create your own online store, place photos and descriptions of products from Chinese sites in it and wait for buyers.
When the client pays for the purchase, use this money to buy the product from suppliers in China at a lower price and send it to the buyer’s address. The price difference is your net income.
Don’t forget that the best-selling products during a crisis are essential products. Expensive goods that are not in great demand may remain unclaimed for a long time, and therefore will not bring you good income.
Medicines
Everyone knows that medicines are essential goods. Any person who feels unwell goes to a doctor who prescribes the necessary medications.
After that, he goes to the pharmacy and even uses his last money to buy medications to improve his health. Therefore, if you are wondering what to sell during a crisis, open your own pharmacy.
In difficult economic conditions, drug sales are not falling. On the contrary, they may even increase if you replace expensive drugs with cheap domestically produced analogues.
Thanks to this, consumers will be able to save money, and you will receive a good profit.
Naturally, opening a pharmacy is not easy. It is necessary to obtain permits to operate (license for trading in medicinal products), as well as register your type of activity.
It will be quite problematic for beginning entrepreneurs to open such a business due to the large start-up capital required to implement this idea of earning money. The way out of the situation is to search for investors. You can read about how to find an investor on our website.
Internet commerce: business in crisis Internet commerce: business in crisis
Personal care products and cosmetics
When thinking about what to sell during the 2018 crisis, many entrepreneurs choose hygiene items.
These are products of daily use that are always in demand among the population.
To increase the level of sales, just as in the case of medicines, you need to focus on trading in inexpensive domestically produced products.
Let's take a closer look at what products to sell during a crisis:
- Oral care products;
- Shampoos, conditioners and conditioners;
- Washing powders and bleaches;
- Cleaning and detergents;
- Inexpensive perfumes;
- Natural cosmetics.
Before choosing what is best to sell during a crisis, you need to first research the market and objectively assess the level of competition.
Conclusions
If you organize your business correctly, it will generate decent income even during periods of economic instability.
Entrepreneurs who decide to engage in trade should remember that the most sold goods during a crisis are budget analogues of essential products.
Source: http://KakBiz.ru/v-krizis/chem-vyigodno-torgovat.html
Trade is one of the pillars of the economy and the most popular activity in private enterprise. Beginning businessmen often find it difficult to decide what exactly to sell in order to get maximum profit without risk.
There are a huge number of positions and directions in which you can develop a sales network. Some of them are attractive because of their large turnover, others because of their high percentage markup, others because of one-time profits, and others because of their relative stability.
Many sellers are let down by the desire to get maximum profit without taking into account other significant factors. Meanwhile, it is necessary to take into account not only the figures of net profit from sales, but also the requirements for storing goods, consumer demand, and seasonality.
In addition, a lot depends on the starting capital, which you can spend on purchasing the first batches of goods.
What store should I open?
You don't always need to chase the possibility of a high markup. For example, in retail chains that sell food, the retail markup rarely exceeds 10%, however, due to the fact that the products are always sold well, even such a markup is quite profitable.
Naturally, when planning to trade products, we must not forget that this is a perishable product that requires storage conditions. Therefore, you must take care of the warehouse space and get rid of excess goods in the warehouse in a timely manner.
To some extent, this also applies to household chemicals, although the shelf life here is much longer.
Unlike food products, clothing and footwear provide the seller with high profits due to the possibility of a significant (up to 200%) markup relative to the purchase price.
Here, too, it is worth focusing on the average buyer, because luxury clothing brands, although they provide more one-time income, are much more difficult to sell.
In addition, the start-up capital required to purchase clothing in the mid-price segment in the required range is much less than when working with the premium segment.
An undoubted advantage of the clothing trade is the absence of expiration dates, but this comes at the price of seasonality. Particular attention should be paid to children's things: it is profitable to trade in them, and buyers will come again and again as their children grow up.
As for low one-time profits, you shouldn’t be afraid of them if your product is popular enough to be bought in large volumes. For example, a package in a supermarket rarely costs more than one or two rubles, but given that its wholesale price does not exceed 20 kopecks, it turns out that the markup is up to a thousand percent. The main thing is to ensure the necessary demand.
Look for profitable options
In general, if there is sufficient consumer interest, you can find many “compromise” categories of goods, the cost of which is five to ten times lower than the selling price, and you do not need to sell several thousand units to ensure an acceptable income. In this regard, children are ideal consumers. Even a small retail outlet next to a circus or amusement park can bring huge profits. You can sell cheap Chinese toys, cotton candy or popcorn. For example, the cost of an average glass of popcorn is 4-5 rubles (of which 3 rubles is, in fact, a paper glass), and the selling price is about 50 rubles.
An entrepreneur engaged in trade dreams that his goods will not linger on the shelves, but will quickly find demand. But during a crisis, the financial situation of the population worsens. Accordingly, people are less likely to shop for non-essential goods.
It would seem that those businessmen who trade clothes, they may not worry about this: they say, a crisis is a crisis, and every person needs not only to eat something, but also to wear something every day.
However, changing conditions force them to be especially careful when deciding which clothes profitable to trade, and which one will almost certainly not find demand. The summer period of the year is approaching.
Which clothes Is it worth trading so that it quickly finds demand and brings profit to the businessman? Look at this issue from the point of view of basic common sense.
What clothes will people most likely buy, even in conditions when their financial situation has become noticeably more difficult? Of course, first of all - inexpensive. But the word “inexpensive” should in no case be synonymous with words such as “bad”, “outdated”, etc.
That is, if a businessman focuses on inexpensive summer clothes - light trousers, shorts, shirts, T-shirts, blouses, light windbreaker jackets - and the clothes are of quite acceptable quality, his goods will almost certainly sell out quickly.
To be on the safe side, it is worth offering customers approximately the same assortment as last season, of course, taking into account fashion requirements, and if last summer the product was quickly sold out.
As for expensive, especially exclusive, clothing, during a crisis the demand for it drops sharply, this is inevitable. Therefore, the share of such goods in the assortment should be reduced to a minimum or even abandoned for some time until the financial situation improves permanently.
What about the nursery? clothes? On the one hand, loving parents will never leave their baby without the necessary things, especially considering that in the summer babies spend a lot of time outside.
On the other hand, during a crisis period, the sad saying is more true than ever: “I don’t care about fat, I wish I was alive!” Practice shows that during a crisis, parents are much more willing to accept used, but still quite normal children's clothing as a gift from relatives, friends and acquaintances who have older children, rather than going to the store to buy one. Therefore, focusing on children's assortment is simply risky. Of course, you shouldn’t give up children’s clothing altogether, but its share in your store should not exceed 10-15% of the total.
- how to sell children's clothing profitably
Source: https://www.kakprosto.ru/kak-819816-chem-vygodno-torgovat
Profitable niches for trading: pilaf via the Internet, knives, optics and much more.
Since the establishment of commodity-money relations, trade has been one of the most profitable types of business.
However, during a crisis, the question of what is profitable to trade becomes especially relevant.
Which product will definitely be in demand: already known and “promoted” or innovative? Low or high price category? Domestic or imported?
To understand which product to choose for promotion, you should analyze the market situation in various segments, its development prospects, evaluate sales channels and the level of competition.
Market situation
Nowadays, citizens' incomes are declining, and this entails a decrease in their purchasing power. According to Rosstat, in 2015, real disposable income of Russians fell by 4%, and in the 1st quarter of 2016 - by another 3.9%.
According to Romir research, approximately 70% of our compatriots in 2015-2016. began to save up to 10% on the essentials: groceries, clothing, shoes, and other non-food items of daily demand.
Sociologists distinguish four types of buyers depending on the strategy they choose to save money (see Table 1).
Similar trends are observed in online sales (see Fig. 1).
Fig.1. How e-commerce is growing in Russia*
*Data is presented excluding online orders of prepared food, tickets, digital goods, and wholesale purchases
In 2015, according to Vedomosti, they grew by only 3% taking into account inflation (excluding - by 16%).
This is 2.5 times less than in 2014 (8% taking into account inflation). In the average online store, the receipt “grew” by 8% and amounted to 4,050 rubles.
The number of orders also increased by 8% (growth to 160 million)
According to Data Insight statistics, buyers' interest has shifted from electronics and household appliances to budget products: inexpensive clothing and consumer goods. At the same time, the share of premium brands and expensive goods has decreased. The leaders are sporting goods, products for animals and children's assortment.
Resume: The market situation makes us think about creating a fairly wide assortment designed for an audience interested in saving money.
At the same time, the quality must be acceptable, since competition in the low and medium segments has been and remains high.
The sales strategy should be focused on different categories of citizens and take into account their preferred methods of saving.
What do buyers want?
Let's look at what products are profitable to trade today, using the example of successful startups and the most popular franchises (according to Forbes 2016).
Food products: pilaf via the Internet
Food products are classified as essential. Even in times of austerity, buyers will never exclude them from their shopping basket.
This means you can take your place in this niche. This is exactly what the young entrepreneur Ilkhom Ismailov did. In 2014, he opened the online Uzbek food store Plov.
Start-up capital - 1 million rubles from their own savings - was spent on furnishing the kitchen and creating a website for accepting orders.
At first, the entrepreneur and his partners sold only pilaf, but in 2015 they expanded the range and began offering sweets, salads, manti, and baked goods: sales increased by 88%. The revenue of the online store in the period from January to April 2016 increased by 2 times compared to the same period last year.
Our immediate plans include creating a franchise (there are already about 200 requests from potential franchisees) and opening a business offline: “We understand that we need to go offline,” says Ilkhom Ismailov. - In summer, people try to spend more time outdoors, in parks. We have to be where our client is.”
At the end of 2015, I. Ismailov became the winner of the “Young Billionaire School”, held annually by Forbes, and his project was recognized as one of the most promising.
Cooking at home: knives for amateur cooks
During the crisis, people began to visit cafes and restaurants less, but at the same time they still want to eat tasty and beautiful food.
Entrepreneur Alexey Yakovlev noticed this trend and entered into an agreement with the largest manufacturer of steel and ceramic knives, Samura Cutlery. By promoting the products of this company in the middle price category, you can interest amateur cooks in them.
The idea has justified itself: today the Samura franchise (TOP 5 in the Forbes rating of 2016) operates 250 points of sale (23 opened in 2015).
The initial investment is 250,000 rubles: it involves the cost of equipping a retail outlet and purchasing a starting batch of knives. The franchisee's revenue is 3.75 million rubles, profit is 2 million rubles (knives are sold with a 160% markup).
Good vision at a price
The demand for health products is consistently high.
This explains the success of Icraft Optics, a federal retail chain of stores that sell ready-made glasses and make them to order (it has its own lens turning workshop).
Business geography: more than 100 cities. There are no royalties or lump sum fees. For the start-up fee (1.4 million rubles), franchisees receive retail, lighting, medical equipment and a basic batch of goods.
The franchisor offers partners the opportunity to make up to 300% of the retail markup and, as a bonus, gives 50% compensation for advertising costs.
Revenue – 6 million rubles, franchisee profit – 3 million rubles.
For children's creativity
Most parents consider investing in the younger generation to be paramount and most profitable, therefore, among everything that is now profitable to trade, goods for children occupy one of the first places. Let's look at them in more detail.
If we talk about the offline format, the franchise for selling creative kits “Orange Elephant” is successfully promoting (TOP 15 in the Forbes rating): 10 of its own and 422 franchise points.
Franchisors have their own production in China of kits for drawing, modeling, design, and decoration.
Today it is one of the most recognizable and rapidly growing chains of goods for children, represented in 61 cities of Russia, as well as in the CIS, Europe, Asia, and South Africa. In 2015, 85 new Orange Elephant locations opened.
Initial investment – 250 thousand rubles. Estimated revenue – 7.5 million rubles, profit – 1.9 million rubles.
What is profitable to sell online?
Today, almost anyone can create their own online store. But not everyone knows what to fill it with.
The editors of Segodnya invited experts to clarify this issue.
| Souvenirs, gifts |
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| Pet products |
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| Hobby items (diamond mosaic, felting wool, paints, brushes, decoupage paper) and collecting items (stamps, coins, antiques) |
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| Goods for recreation and tourism |
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But not everything depends on the popularity of a particular product. In order for trading to be successful, professionals recommend selling what you yourself are well versed in.
If the seller is an expert in his product, the buyer trusts him and quickly becomes a regular, recommending him to his friends.
This must be taken into account when choosing your trading niche.
Trade is one of the most profitable sectors of the economy. You need to start your business with detailed monitoring of the market, studying the buyer, determining demand and taking into account seasonality for specific categories of goods. Retail trade is a large field for entrepreneurial activity, but all the niches in it have long been occupied. This does not mean that you need to give up; on the contrary, you should study the specifics of your regional market and accurately determine the group of goods with which you will work. The product market has many positions that are suitable for a start-up business. You need to choose those with minimal risks, high interest margins and a large volume of trade turnover. The stability of consumer demand, especially for essential goods, is also important. These products include food, personal care products and household chemicals. They are in steady demand and are always relevant. There is also a category of seasonal goods, the demand for which is greatest during a certain period. The remaining goods have less pronounced trade specifics and are secondary, from which demand depends solely on the needs of the buyer in certain conditions and environment.
To know what is profitable to trade on the market, you need to carefully study the market, develop a business development strategy and plan for all the factors that could reduce demand. Also, you should carefully consider the indicators of the starting capital, the specifics of the selected group of goods and calculate the possible markup. Thus, for food products in retail chains the markup is 10-15%, household chemicals and hygiene products can be sold at 20-30%, but clothing, especially seasonal ones, can have a profit of up to 200% per unit.
Where to start trading?
First of all, you need to decide on the trade segment. If you intend to sell products, you must take care of storage conditions and equip warehouses. Limited shelf life of dairy products, fresh vegetables and fruits, meat, etc. requires the supply of refrigerated chambers to trading floors to create suitable storage conditions.
Set goals in advance. Do not purchase goods in unlimited quantities if you are not sure of their sale. Immediately find contractors and suppliers with whom you will cooperate. Discuss the possibility of changing the volume of purchased goods, depending on sales.
You need to start trading in the market by organizing a retail outlet. Depending on the specifics of trade, plan what suits you best: a container on the market, a pavilion or a trading floor. Rentals must be agreed upon in advance, as good spots do not stagnate for long. It is better to rent premises closer to the center of the market than to settle for distant points. Please note that the most profitable places are those with the highest customer traffic: the beginning of the shopping row, the market exit and the first row.
Before you start trading on the market, decide on the form of doing business. There are three main forms: individual entrepreneur (individual enterprise), partnership and corporation. Each form has several modifications.
The optimal solution for trading on the market is individual (private) entrepreneurship with simplified taxation. Register all documents with the tax service and register as an individual entrepreneur, which will help avoid problems with your business in the future. Official registration allows you to establish relationships with suppliers and minimize risks. Trading on the market without registering an individual entrepreneur is prohibited and this is fraught with fines and administrative liability.
What to choose for trading?
Everything is sold at the market and the potential buyer knows that it is more profitable to buy, for example, meat or vegetables at the market than in the supermarket. The first thing you need to trade on the market is to choose a category of goods to sell. The type, volume and name of the product are of great importance for effective business. The most popular products for sale in the market are:
- clothing and shoes;
- fresh vegetables and fruits;
- meat and fish;
- dairy products;
- personal hygiene products;
- household chemicals;
- non-food products (for home, garden, vegetable garden, etc.).
If you decide for yourself that I want to trade on the market, then analyze the scope of activity of each area of \u200b\u200btrade: food, non-food, construction. Essential goods are in constant demand. These include:
- bread and bakery products;
- toilet paper;
- potatoes, carrots, onions;
- meat and offal;
- intimate hygiene products;
- milk, cheese and cottage cheese.
Other products are seasonal. For example, winter clothes and shoes are most popular in the run-up to the season, and the meat trade has virtually no waste and costs.
What goods are profitable to sell on the market depends on its location. If this is the central market of a large city, then everything you sell will bring profit. If this is the outskirts of the city, then it is better to give preference to clothes, shoes, and a pastry shop. In a small settlement, only essential and essential goods are in demand, so there is no point in selling dried fruits, tea stalls or gourmet sweets. For coastal areas, the optimal solution is fast food: ice cream, hamburgers, hot dogs and low-alcohol drinks. The latter require a license.
What is better to sell on the market?
The market is popular because you can buy everything here, much cheaper and, according to many consumers, of better quality. The best way to trade on the market depends on how much capital you are counting on to make a purchase. Selling clothing requires significant investment in goods, and until you know your potential client, half of the things will be poorly sold. Trading things requires experience. If you are targeting a specific client, for example, young people, then always follow the latest fashion trends, track the buyer’s taste preferences and his financial capabilities.
It is most profitable to trade meat and fish, but there are many nuances. First of all, you need to create conditions for their storage. Plan in advance who you will buy meat from, check the quality of the goods from suppliers, documents and licenses. You are responsible for the quality of meat and fish. Fish requires a freezer, but it is less problematic in terms of sales than meat. Fish sells well, both frozen and chilled, and meat is sold only fresh.
Another thing that can be sold at the market is seasonal vegetables and fruits. In the summer, cherries, watermelon, strawberries, etc. will bring a lot of profit. Here it is important to organize storage conditions and promptly sell the goods, since they are perishable. The same cucumbers, potatoes, and tomatoes sell better in the summer. But milk, cheese, and sausage products are popular all year round.
What are the benefits of trading on the market?
Is it profitable to trade on the market? The primary question that concerns entrepreneurs. Every business has advantages and disadvantages. Among the advantages of trading on the market:
- low rent per outlet;
- the ability to trade several types of goods simultaneously;
- constant flow of customers;
- possibility of business expansion;
- a large selection of areas for trade;
- good profit with minimal investment, etc.
The disadvantages of trading on the market are the wrong location for the point, lack of advertising and effective sales skills, costs and illiquid assets, etc. It is important to know how to learn to trade correctly. To do this, do not use too high a markup, advertise the product and use the discount method to reduce losses.
What is the most profitable way to trade? Choosing a profitable direction before starting a business
For a beginning entrepreneur, this is a very important question before investing your money, strength and will into a business - how to find, how to choose exactly that niche in the market where there will be both good demand for the product and many paying customers. This dream of every beginning entrepreneur is not always realized, let’s even put it another way - very, very rarely. And the reason for this rarity is the most prosaic - competition.
Yes, yes, the same competition that we all wanted to see around us for so long during the Soviet Union. If only someone found a profitable niche for their business - and someone else found out about it - tomorrow there will be not one entrepreneur in this niche, but two, and the day after tomorrow not two, but four... And after a very short time in this niche It will no longer be free, but competition, like everywhere else in the market.
There is another option- to have an uncle somewhere who works as the director of a large state-owned enterprise and, out of kindred feelings, will only transfer orders to you for the purchase of goods and the provision of services. And since this uncle will only be your relative, there will be no competition. But this is the topic of another article - about monopolism and corruption in government agencies. And in this article we will consider the ideal situation of a competitive market, which often exists when there are simultaneously a large number of competing firms and entrepreneurs of approximately the same size in one niche and using similar technologies or selling similar goods.
Given that Today in the market all niches seem to be filled and fully occupied, this is wrong. And this is not true for one simple reason - the market is developing steadily, technologies are changing, products are changing, demand is changing. At the same time, new product niches are constantly emerging in the dynamics of change, but they are quickly filled and are occupied by the most mobile and competitively prepared entrepreneurs. Or those who were simply lucky to be in the right place at the right time.
Here are some examples of successful use of uneven market development and changing the situation in order to gain a local competitive advantage in a highly competitive environment.
Let's take an example from the distant past. Once upon a time, when we still didn’t have cockroach pencils on sale at all, one of the commercial companies found out that such a product was already available in China. And then there were a lot of cockroaches in houses, it was just a general disaster. The company entered into a large supply contract, and the first batches of this product sold out with a bang within 2-4 months, and the product was sold at a price 2-3 times higher than the purchase price.
And then, when these 4 months passed, many companies were already importing these pencils from cockroaches, prices fell along with the level of profit. And a year later it was already an ordinary commercial product with a markup of 20-30% of the purchase price.
Or let's take another example from the recent past. The good communicator Palm Treo650 was released in the USA relatively recently. Well, it was good at that time, then progress moved forward, and more advanced communicators began to be produced. But that same Treo650 turned out to be such a successful model that a lot of it was released.
One year it was even the best-selling communicator in the United States. And when the fashion for it passed in the USA, there were still a lot of these models that were slightly outdated by American standards on the market. And by our standards, he was still very remarkable. And there were smart people, they did the math, and began to import these communicators in containers to our market. At the same time, the wholesale purchase price for this model, outdated by US standards, was $100-120. And here it was sold at a price of 350-450 dollars. And this went on for a long time by today’s standards, more than a year. And then several large companies saw this situation, did the math, and brought in very large quantities of such communicators.
That's all. There was an excess of goods on the market, the price fell. And in our market, prices for newer models have begun to decline. Everything was back to normal.
Therefore, those who really want to make money are constantly looking for new options for earning money, new products and services for possible earnings.
Now let's look at what goods and services there is currently unsatisfied demand for.
There is always a choice here. Or you need to go to the consumer goods market. For example, people buy bread, milk, potatoes and other products regularly every day. But due to the fact that the competition for their sale is very, very high, the profitability of such trade is not very attractive. With such trading, you need to rely either on the use of some new technologies, which significantly reduce the cost of selling such goods in your stores, or on large sales volumes. It is no longer possible to do without the creation of large supermarkets and retail chains. This path is no longer suitable for small and medium-sized businesses.
Another option is to search for completely new options for goods and services., during the implementation of which you will be able to work for some time practically without competition, because at first you will be the only one. If you try to get creative and quickly find a product that is suitable for any region, I would first of all name new fashionable styles of clothing and shoes.
Such products are created by marketers and designers every year. New collections are coming out, and if you already sell clothes or shoes, you can directly contact suppliers of fashion brands in your price niche and please your customers with new products. Which of course will be in demand. But only the first time.
Then your competitors will import similar models, demand and margins will fall... But if you take care in advance to purchase new models that are fashionable for the next season, then you will always have new products for your customers.
And we also need to take into account that progress not only creates new business lines and niches in the market, but also kills old ones. Until recently, trading cassettes for cassette recorders was a very profitable and widespread business. But the time has come, cassette recorders have disappeared, and no one needs such a product as cassettes for them.
Let's take another industry. Every year we sell massive amounts of new electronic gadgets, mobile phones, laptops and netbooks and many other similar equipment.
And for most of these devices, batteries fail much faster than a communicator or laptop deteriorates or becomes obsolete. And many entrepreneurs have found a way to help people - they have established direct delivery of batteries and other small items for electronic equipment on orders directly from China or Taiwan from manufacturers. Or they purchase such spare parts at global electronic auctions such as ebay.com. At such auctions, you can purchase electronic components from existing equipment much cheaper than from a supplier of such equipment.
The technology is very simple– the supplier of communicators buys the same batteries from the battery manufacturer, makes his own markup on them, then the equipment supplier buys electronic devices along with spare parts, takes them here to the warehouse, makes another markup for his work plus for storage in the warehouse. And at an electronic auction you can purchase batteries directly from the manufacturer, and you save a significant amount, which, when delivering not just one unit of goods, but an entire batch, grows many times over.
With modern means of communication and delivery, this is quite simple and allows you to quickly supply customers with exactly the type of goods that they need right now. There is always effective demand for it, which only increases constantly with the purchase of new equipment.
The question arises: should a new entrepreneur copy existing successful businesses? who already have clients, sales volumes, profits and turnover... But here you must immediately understand that if a successful business already exists and intelligent people work in it, then you can create one either in another place, or in the case when This business is being phased out for some reason. For example, a company worked successfully in the clothing market in one city. You came from another place, got acquainted with the assortment, the system for searching for suppliers and buyers, realized that in your city there is no such type of trade and assortment of goods today, copied and moved such a business to your city. This option may turn out to be successful.
It’s especially nice if you manage to not just copy the business, but to bring something new and unusual into it. Then the probability of success becomes even higher. But you need to immediately understand that any business is not only an opportunity, but also a commercial risk. And the more potentially profitable the business, the greater the risk those who will engage in it take on.
The main task of a novice entrepreneur who does not yet know what to trade on the market is to conduct research, study supply and demand and make a choice.
The state helps the unemployed who are registered at the labor exchange and provides them with free funds for business development. In addition, now it is not a problem to go to the bank and get money there. After the future entrepreneur has decided on the sources of funds, it is necessary to agree on renting a place on the market and choose a suitable product for himself. Not everyone makes the right choice; out of 10 beginners, only 1-2 trade successfully.
The choice is actually very large, but often we see the same thing in the shopping malls. Most often, new entrepreneurs, having noticed what sellers who have been working for many years are selling, want to emulate them and copy the range of products they sell. This is a big mistake. The fact is that if, for example, the number of meat traders increases, the number of buyers of this product will not change. Before your appearance on the market, there was a certain balance between the number of retail outlets selling a certain product and the number of buyers of this product. you will only join the existing stream and, without having regular customers, you will receive only a small share of the revenue. The income may be so small that there is not even enough money to pay rent for the premises. In addition, most likely, sellers of this product will treat you unkindly.
Three reasons why buyers go to the retail market:
- You can find any product here.
- Here you can bargain (ask for a discount).
- There is a trusted seller for every product here.
Selecting a product to trade on the market depending on demand
It is necessary to cling to the first point and understand what product is missing on the market. Look around, pay attention to which places a large number of people gather and why, see how many points with similar products there are. Determine what is the reason for the great interest: the uniqueness of the product, its quality or the professionalism of the sales consultant?
If you notice that a certain product is not on the market, carefully ask if anyone has tried to trade it.
Under no circumstances should you trade a product that only you like. This will only have a positive impact on the admiration with which you advertise the product. Each person has his own unique taste, but to become a successful trader and make a large number of sales, you need to focus on what will appeal to the majority of market visitors. You may not generally like the desires and preferences of buyers, and here you should make a choice, what do you want more: satisfaction of personal opinion or a good income?
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Choosing a product to trade on the market depending on the location of the outlet
When choosing a product, you need to take into account the location of your retail location and adequately assess its features. There is a group of goods in the market that are not assigned to a specific place (for example, home-cooked meals that are distributed to market traders). Typically, the entire territory of the trading area is divided into sectors: in one sector they sell shoes, in another - fish, in the third - office supplies, etc. When coming to the market, for example, to buy shoes, the buyer purposefully goes to a certain sector, where the whole assortment, and is determined by the choice. Therefore, it is not economically feasible to sell slippers in the outerwear sector, and vice versa. But there may still be exceptions. For example, in the aisles with children's clothing and shoes, you can open a point selling fresh pancakes or muffins, which children love so much.
The market is also divided into places that are considered passable and non-passable (located at the end of the trading rows, along the periphery of the market, in side and dead-end passages). Good traffic places are always occupied, so those starting their business in the market will most likely have to deal with places with not very high traffic.
You should know that everyday goods (for example, cigarettes, bread, etc.) cannot be sold in impassable areas. Special purpose and narrow range products are more successfully promoted here (for example, hunting knives, cages for pets, etc.).
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Selecting a product to trade on the market depending on the size of the outlet
The area of the retail outlet is also taken into account here; on three square meters it is simply impractical to sell fur coats or spare parts for cars: you will not be able to provide the buyer with the necessary assortment, and not everyone likes to choose from a catalog. Most people prefer to touch and hold the product in their hand before purchasing. But in such an area you can provide a good selection of tea, cigarettes or other small goods.
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Selecting a product to trade on the market depending on the size of the starting capital
It is, of course, up to you to decide whether to sell imported tights or Italian shoes, but whatever you choose, you should have a good assortment in this category. It should be borne in mind that you cannot invest all your funds on the purchase of goods. You may receive an order for something else that is currently out of stock, and you must have the money to purchase it.
Trade, for example, in fast food, involves, in addition to the purchase of basic products, the purchase of special equipment and inventory. At the same time, the cost of purchasing equipment is much higher than other costs.
From this we can conclude that you need to choose a product that you can present in the maximum range. A buyer who visits your retail location should not have the desire to look for something somewhere else.
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Choosing a product to trade on the market depending on seasonal factors
When selling, for example, winter fur clothing, you must understand that in the warm season the demand for this product will decrease significantly and you may even suffer losses. Therefore, it is necessary to provide for this and change the assortment depending on the time of year. It will be best if you do not radically change the product according to its intended purpose. If, for example, during the cold season you sell winter hats at your outlet, then in the summer you can sell hats, caps, etc.
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Selecting a product to trade on the market based on existing suppliers
Having decided on the category, you need to study the offers of wholesale suppliers. It should be borne in mind that there are currently a lot of resellers, so it is most profitable to establish direct contacts with manufacturers. For example, when choosing suppliers of sausages and sausages for hot dogs, you need to review all possible suppliers. In addition, many of them are ready to make significant discounts for certain purchases and provide refrigeration equipment for rent for a small nominal price.
When negotiating the terms of wholesale purchases, it is necessary to foresee in advance the issues of expected returns, exchanges, and quality guarantees. This is especially important when trading power tools (they are finally checked only after some time of operation), as well as goods that cannot be immediately checked for quality.
You should avoid large wholesale purchases in spontaneous markets in which you are poorly oriented. Avoid goods that do not have the necessary quality certificates - their sale can result in large losses in the form of fines, including termination of business activity and confiscation.
Do not choose a product based on the advice and general ideas of your neighbors in the shopping aisle. By thinking outside the box, you can purchase exactly the product that will be in greatest demand.
By choosing what to trade on the market, you define your business. Therefore, think in advance about how you can develop and improve it (opening new points, expanding the range, related trade through online stores, etc.).
Below is a partial list of goods and services that you can trade on the market.
Before investing your money, energy and time in a business, any aspiring businessman asks this important question. How to occupy exactly that market niche where there will simultaneously be good demand for its products and a sufficient number of solvent consumers. Every new entrepreneur dreams of this, but these dreams come true very rarely and, more often than not, remain dreams. And the reason for this is the most common - competitors.
Competition was exactly what we dreamed of during the Soviet Union, when there was a shortage of goods. Today, if someone has found a profitable industry that is not occupied by anyone, they will find out about it almost immediately. And tomorrow there will already be two or three entrepreneurs in this industry, who will begin to multiply at the speed of mushrooms after rain. And in a short time this niche will be filled with militant competitors.
There is, of course, a better situation, provided that somewhere in a large state organization your uncle works as a director, who, out of family feelings, will transfer orders for services and the purchase of goods only to you. And since this is only your uncle, there will be no competitors. But this is fraught with an article about monopolism and corruption in state enterprises. Therefore, it is better to consider the ideal version of a competitive market with the condition that in this industry there are simultaneously a large number of approximately identical competing entrepreneurs and enterprises that use similar technologies or sell a similar range of goods.
All market niches today seem occupied and fully filled. But in fact, no, due to the fact that the market is steadily growing and developing, technologies and products are changing, and the demand for them is changing. Because of this, new product industries arise, quickly filling with the most active and competitive entrepreneurs. And also those who simply happened to be in the right place at the right time.
And now a few examples of how you can and should use the unevenness of market development, and how to take advantage of changing situations in order to gain a local advantage over competitors in conditions of a crowded product niche.
Once upon a time in the distant past, there were no cockroach pencils in Russia. And there were countless cockroaches in the houses. One commercial organization learned that this miracle remedy can already be found on sale in China. And this same company entered into an agreement for the supply of a huge amount of goods. The first batches were snapped up like hot cakes for several months, despite the fact that prices were two to three times higher than the purchase price.
Then, when other companies found out about this after some time and also began to import pencils from cockroaches to Russia, along with the amount of profit, prices also fell. A year later, this product was no different from an ordinary commercial one, and there was the same markup of 20-30% of the purchase price.
Or another situation from the relatively recent past. A good communicator, the Palm Treo 650, was released in the USA. For some time it was the best. But progress does not stand still. They began to produce more advanced communicators. But the Palm Treo650 still continued to be in demand because it was a very successful model. In this regard, it was released in a very large batch.
In one year, this communicator managed to become the best-selling communicator in the States. Then, of course, the fashion for it ended and it became outdated. But there was a significant remainder of the batch left on the market. And the change in fashion has not yet reached Russia. And there were enterprising people who figured it out, did the math, and began shipping containers of these communicators to our markets. For comparison: once the United States recognized this model as obsolete, its purchase price was reduced and amounted to $100-120. In our country, the Palm Treo650 cost $350-400 as a new product. This went on for over a year. Several large companies, seeing this situation, also decided to make money and began to import these communicators in very large quantities.
And the boom ended. Since there was a surplus of goods on the market, the price quite naturally fell. Just at that time, the cost of newer models began to decrease in our market.
Therefore, in order to really make money, you need to constantly look for different options for earning money, new products and services.
Now let’s see what goods and services are in demand now.
As elsewhere, you can choose here. For example, the market for everyday products. Every day or quite regularly people buy bread, potatoes, kefir, cereals, sugar, salt and other products. But since these goods are constantly needed, there are very, very many manufacturers of this assortment, so you can’t count on the profitability of this trade. In order to have more than competitors and always have demand for your products, you need to constantly introduce some new technologies that will reduce the cost of goods, or count on large sales volumes. Here we can no longer talk about small and medium-sized businesses, since we will have to create large supermarkets, shopping centers and chains.
There is another option - to look for completely new products and services. You will be the only one on the market, and for some time you will be able to work without competition. If we talk about a product that can be quickly found and is suitable for any region, then these are constantly changing fashionable styles of clothing and shoe models.
Designers and marketers work to create such products every year. If you already have a sale of clothes and shoes, you can contact suppliers of popular fashion brands in your price category, and delight your customers with an assortment of new collections every season. All this will be in demand, but only for a certain time.
Then competitors will learn about the profitability of your enterprise and begin to import and sell similar models. Demand and margins will inevitably fall. Therefore, take care in advance about purchasing new models that are relevant for the next season, and buyers will always come to you.
It is also necessary to take into account that constantly evolving progress can not only create new business lines and market niches, but also destroy old ones. More recently, the sale of cassettes for cassette recorders was widespread. It was very profitable. But then the development of technology stepped forward, laser discs appeared, and cassette recorders became obsolete and disappeared from production. Cassettes are no longer needed by anyone.
Or let's look at another similar industry. Every year our market is massively replenished with new mobile phones, laptops and netbooks, tablets, electronic gadgets and other equipment.
The batteries for these devices wear out faster than the device itself deteriorates or becomes obsolete. Therefore, many entrepreneurs have managed to arrange supplies of batteries and other spare small items and accessories for electronic equipment directly from Chinese or Taiwanese manufacturers. They help people and don’t forget their profits - everyone is happy. Or they buy from the largest online stores known all over the world, for example, ebay.com. There you can purchase spare parts and various components for existing equipment much cheaper than from the supplier of this equipment itself.
The scheme is very simple. The communicator supplier purchases batteries from the direct battery manufacturer and adds its own markup to them. Then the equipment supplier makes purchases of electronics along with spare parts, brings them to its warehouse and once again makes a markup for delivery and separately for storing the equipment in the warehouse. And at an online auction you can buy batteries directly from the manufacturer. It is clear that in this case you save a lot of money, which also increases depending on the quantity of goods in the delivered batches.
Modern means of communication and delivery make it possible to receive the ordered goods quickly and easily. And there is always effective demand for it, constantly increasing with the acquisition of equipment
Here a logical question arises about whether a novice businessman should do everything the same as those who already have many clients, large sales volumes, turnover and good income. The answer may be simple: if someone came up with and created a successful business, then this someone is a smart person. This means that the same business can only be reproduced if for some reason the enterprise is closed, or it can be set up in another, less busy place. For example, there was a certain company that successfully worked in the clothing market in one city. You are from another city. We arrived and got acquainted with the assortment, how to find suppliers and clients. In your city today there is no such product and such trade. And you copied this type of business and moved it to your city. In this case, the option will be successful.
The likelihood of success will become even higher, and you will be especially pleased if you manage not only to do everything the same, but to bring in some of your own ideas - new and original. But at the same time, it is necessary to realize that any undertaking in the market is primarily a commercial risk, and not just profits and opportunities. And the more profitable the business, the greater the risk for the businessman.
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